Peoria Mayor Jim Ardis firm against water buyout

Rita Kress' rationale for her late-hour offer regarding a possible municipal waterworks purchase isn't clear. Not to Jim Ardis in particular. "I would never speculate on what her motivation may be," the Peoria mayor said Wednesday. "We've never had the discussion." ...

"I would never speculate on what her motivation may be," the Peoria mayor said Wednesday. "We've never had the discussion."

But Kress did send Ardis a letter, dated Tuesday, offering to help pay for city research related to a potential buyout of Illinois American Water. The City Council has until Nov. 26 to decide whether it wants to exercise an option that arises every five years.

On Wednesday, Ardis reiterated his opposition to a buyout. It also appears he might not want to revisit the buyout option twice each decade.

Skipping a five-year cycle could be a victory for both parties, according to Ardis. As a condition of a waiver, the city could require compensation from Illinois American. The company's investors also might feel more secure about financing and profiting from infrastructure projects if there wasn't a perpetual possibility of a government takeover.

"Maybe it's time to have that discussion," Ardis said.

Kress did not return telephone messages Wednesday. Her Brimfield-based company manufactures specialty transport carriers used in the metals and material handling industry.

Kress apparently was involved in a private meeting earlier this year about the council's option to buy out the water company. She also was part of the Peoria Area Advancement Group, investors who in 1998 advocated a buyout and loaned the city $1 million to perform due diligence.

Then, as in subsequent five-year intervals, the council eventually decided against a buyout.

It's been estimated a buyout could cost about $300 million. Pre-buyout research could cost $2 million. A nascent group Kress called "Citizens for Water" - as of Tuesday, she was the only member - plans to offer the city $200,000 toward due diligence, according to her letter.

Ardis has been through the buyout process before, as mayor and as a councilman. But the council composition has changed recently. Half of the council's 10 seats have changed hands this year.

Still, Ardis said his gut feeling is the council opposes a buyout, despite its vote Tuesday night to extend a deadline that was to have been next week.

"This would amount to a hostile takeover," Ardis said. "The expense is going to be crazy. I think there is a highly qualified firm that owns that company that's providing good service at a reasonable price.

"I'm not saying we don't have the right to buy it. Clearly, we do. . . . To me, it's really something we just don't have any business going into right now."

Nick Vlahos can be reached at 686-3285 or nvlahos@pjstar.com. Follow him on Twitter @VlahosNick.